Mubasher: Economic growth in Germany is expected to remain weak during the fourth quarter (Q4) of 2019, according to the German central bank (Bundesbank), Reuters reported.
Nevertheless, Bundesbank sees no reason to fear a recession with signs showing the industrial sector to be stabilizing.
There were concerns regarding a recession in Europe’s largest economy during the last quarter, which saw a 0.1% quarterly expansion.
Despite challenging conditions, from the global trade war to the economic slowdown in China’s and shifting consumer habits, negatively impacting the German industry, the domestic economy remains resilient.
The labour market is likely to remain fairly robust and wages are expected to grow considerably, accordingly, households’ income prospects should remain favourable, the Bundesbank noted.
German firms are reportedly retaining staff even during tough times, fearing they would struggle to find skilled workers once the downturn ends.